Trump vows harsher tariffs as EU and Canada retaliate, fuelling fears of economic chaos and job losses
US President Donald Trump has intensified his global trade war, pledging even harsher tariffs after the European Union (EU) and Canada retaliated against his latest steel and aluminium import taxes.
On Wednesday, Trump ended exemptions that shielded certain countries, imposing a blanket 25% tariff on all steel and aluminium entering the US. The move sparked immediate backlash from allies, with the EU slapping new levies on $28 billion (£22bn) of US goods and Canada hitting back with $20 billion (£16bn) in tariffs on products ranging from computers to sports equipment.
Trump, however, refused to back down. “Whatever they charge us with, we’re charging them,” he declared, promising reciprocal tariffs next month on a range of foreign goods, including cars, copper, and lumber.
The economic fallout has rattled financial markets, stoking fears of rising consumer prices, job losses, and a slowdown in global trade. Speaking from Brussels, EU President Ursula von der Leyen slammed Trump’s tariffs as “bad for business, worse for consumers.” She warned that the US-EU trade relationship was now at serious risk, though she insisted Brussels remained “ready for meaningful dialogue.”
Canada’s Prime Minister-designate Mark Carney also struck a defiant tone, announcing immediate countermeasures but leaving the door open for negotiations “as long as there is respect for Canadian sovereignty.”
Other key US trading partners, including the UK, Australia, Mexico, and Brazil, have so far held off on retaliation, with British Prime Minister Sir Keir Starmer calling for a “pragmatic approach.” However, he made it clear that “all options are on the table” should tensions escalate further.
Beyond metals, major US food and beverage companies have voiced growing alarm over the impact of tariffs. According to a leaked letter to Trump, industry giants like PepsiCo, Quaker Oats, and J M Smucker are begging for exemptions on critical imports such as cocoa, fruit, coffee, and tin mill steel, warning that tariffs on these goods—which the US does not produce domestically—could cripple supply chains.
The financial world has already started feeling the pain. After two days of sharp declines, Wall Street remained volatile, with the Dow slipping 0.2% while the Nasdaq jumped 1.2% as investors scrambled to assess the fallout.
In a heated White House appearance alongside Irish Prime Minister Micheál Martin, Trump doubled down on his aggressive stance, taking aim at EU trade policies. He blasted Brussels over antitrust penalties against Apple and accused it of undermining US farm products and car exports.
“I’m not happy with what the EU is doing,” Trump said. “They’re creating ill will, and we’re going to win that financial battle.”
With tensions escalating and no resolution in sight, the world now braces for the next phase of Trump’s global trade showdown—and its potentially devastating economic consequences.
